Starting with personal finance

If you’re in your 20s, it’s important to learn about personal finance early on.

It wasn’t the most talked about topic as I grew up. 

It still isn’t. So, I self-taught myself some critical lessons that I didn’t know about a year ago. 

I’d give this credit to Matt D’vella, Morgan Housel and Ankur Warikoo for all the teachings. 

Here they go:

✅Savings

saving sometimes don’t have to have a purpose. It can be for the unforeseeable things. 

A fixed amount of my income goes into recurring deposits so that I don’t spend it whenever I can. 

Automatic deduction is the way to go. 

✅Credit cards

I never heard good things about credit cards. But since owning one, I have used it well. 

I made my expensive purchases using it and paid the monthly instalment on time. Maintained a good credit score. 

So yeah, it’s not the credit card but the psychology and behaviour at play. 

✅Investing

this one I started five months ago. 

I wanted stocks for the long term, no matter what the “market situation” was, so I invest a fixed amount every month. 

✅Big purchases

as I don’t spend much on clothes, most of my big spending are on tech products and travel. 

No cost EMI works well for me, and Airbnb is the best for all travel needs. 

And rigorous research goes into my decisions process before I buy anything. No impulsive purchase is the rule. 

Of course, I’m still learning about it. 

I’m sure my outlook towards personal finance won’t be the same two years later. 

Photo by Kelly Sikkema on Unsplash